Parex Resources Reports Major Expansion Following Acquisitions
Parex Resources has completed its Frontera acquisition and formed a partnership with Ecopetrol in the Magdalena Basin, significantly expanding production guidance to approximately 86,000 BOE per day. The company's Colombian land position now exceeds 7.9 million acres, making it one of the largest independent exploration and production firms in Colombia. Parex reaffirmed its second-half funds-flow guidance between $475 million and $525 million with capital spending expected to range from $275 million to $295 million over 12 months. Management highlighted ongoing integration efforts, cost synergies, and exploration opportunities in the Eastern Llanos region. The company plans up to 20 wells for development and expects drilling at its high-impact Piedemonte prospect by fall. Despite challenges like higher energy costs and a stronger peso affecting margins, Parex remains optimistic about long-term growth through waterflood optimization and enhanced oil recovery.
Topics: acquisition integration capital spending oil & gas production guidance